LIFE INSURANCE IN RETIREMENT PLANNING

Transcription

1 CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS PROTECTION AND POTENTIAL INCOME LIFE INSURANCE IN RETIREMENT PLANNING CONCEPT KIT NOT FOR CONSUMER USE Ed. 09/2013 Exp. 03/23/2015

2 DID YOU KNOW? Your high income and high-net worth clients will most likely pay taxes on 100% of their retirement income? Are they interested in a concept that may provide retirement income that is tax advantaged? 4 This kit will show you how to effectively prospect for clients who could benefit from Life Insurance in Retirement Planning, and how to design and implement that strategy. KEY SECTIONS OF THE KIT: CONCEPT INTRODUCTION ACTION PLAN CLIENT PROFILES CLIENT CONVERSATION POINTS SAMPLE MATERIALS IMPORTANT CONSIDERATIONS

3 CONCEPT KIT HELP YOUR CLIENTS MEET THEIR PROTECTION & RETIREMENT PLANNING NEEDS RETIREMENT PLANNING WITH LIFE INSURANCE During their working years, many of your clients want life insurance because the death benefit protection it provides can help their loved ones carry on financially without them. However, once in retirement, clients often find they have less of a need for death benefit protection, and a greater need for income. A properly executed Life Insurance in Retirement Planning strategy can help to meet both the need for protection and income. The benefits of life insurance in retirement planning The primary purpose of life insurance is to provide your clients loved ones with a federal income tax-free death benefit. However, because of the unique tax treatment that life insurance receives, it also has the ability to accumulate cash value and allow clients tax-advantaged access to their account values through loans and withdrawals. It is this flexibility that may allow life insurance to meet your clients many changing needs. How does it work? Determine your clients death benefit needs and risk tolerance, then select a life insurance product such as a universal life, indexed universal life, or variable universal life designed to offer death benefit protection and build cash value. DEATH BENEFIT NEEDS ACTION PLAN Provide death benefit protection RISK TOLERANCE Potentially build cash value

4 CONCEPT KIT Action Plan for Success 1 REVIEW CLIENTS & PROSPECTS 2 SEND LETTER OR 3 FOLLOW-UP PHONE CALL TARGET CUSTOMERS Review the Client Profiles in the next section and select the client groups that provide the most opportunity. Step 1: With the profile you ve chosen in mind, review your client book and prospects, and highlight individuals who could potentially benefit from the Life Insurance in Retirement Planning strategy. CONTACT CLIENTS Contact clients or prospects to talk to them about the importance of life insurance protection and why they should consider a permanent life insurance policy that could potentially accumulate cash value and provide supplemental income. Schedule a meeting. Step 2: Send a letter or to your prospects to explain the benefits of a Life Insurance in Retirement Planning strategy. Prudential has provided a sample of each in this kit that you can use for your convenience (if approved by your firm). Step 3: Follow up your letter or with a phone call to ensure each prospect has received your note, and to ask for a meeting. You can review and use the talking points in the Conversation Points section. 4 PREPARE FOR MEETING 5 CLIENT APPOINTMENT 6 FOLLOW UP MEET CLIENTS During your meeting, you should focus on the client s needs and ensure you have the proper tools required to explain the strategy and product you are offering. Step 4: Begin by ordering copies of the consumer brochure for the appropriate life insurance products to help you quickly identify protection needs. Step 5: At the meeting, walk your prospect through the brochures and use illustrations to show how the product you are recommending offers valuable death benefit protection and the potential for supplemental income. Again, we have provided talking points in the Conversation Points section for you to use. Your Prudential Life Wholesaler or Representative can walk you through the consumer brochures and discuss how to present them to your clients. Step 6: Follow up with the clients afterward to continue to discuss the concept, or collect all of the necessary paperwork if they have decided to purchase a policy. Following up with a call can help increase your closing rate.

5 CONCEPT KIT LIFE INSURANCE IN RETIREMENT PLANNING Client Profiles RETIREMENT A life insurance policy that has the potential to grow cash value and provide supplemental income could appeal to many clients. The key is to talk about the importance of death benefit protection and the flexibility of cash value accumulation.* Your clients understand the important role that death benefit protection can play during their working years, and how it can help to ensure that their dependents will be able to maintain their lifestyle after an unexpected death. But many clients may also be interested in accumulating additional assets to supplement their retirement. With that in mind, here are a few client groups with whom the Life Insurance in Retirement Planning strategy could resonate. Death Benefit Protection and Supplemental Retirement Income: An Appealing Combination The Life Insurance in Retirement Planning concept can be a successful strategy for your clients who have contributed the maximum allowed to their respective qualified plans. Here are three potential client profiles: HIGHLY COMPENSATED/HIGH- NET-WORTH CLIENTS If you have high-net-worth or highly compensated clients, such as business executives, doctors, lawyers or consultants, who are relying primarily on qualified plans, savings, and Social Security to reach their retirement income goal, they may want to consider a Life Insurance in Retirement Planning strategy. In addition to providing death benefit protection, life insurance: Provides another potential source of tax-deferred growth Offers potential income that may be typically federally income tax free Additionally, this strategy can help clients defer accessing their taxable assets until they are in a lower tax bracket. This helps reduce the potential erosion of their taxable assets. SMALL BUSINESS OWNER (PRIVATELY OWNED OR FAMILY HELD BUSINESS) Business owner clients who need death benefit protection and want to supplement their retirement income may want to consider a Life Insurance in Retirement Planning strategy. In addition to providing death benefit protection, life insurance: Can be offered selectively to only key employees/executive Provides the opportunity to accumulate tax-deferred cash value Can provide tax-advantaged income in retirement LGBT CLIENTS A Life Insurance in Retirement Planning strategy can also help meet the needs of your clients in the lesbian, gay, bisexual, and transgender (LGBT) community because the commitments they have made to one another and their children may not be fully recognized by state law.** Through life insurance (provided there is a valid insurable interest under state law), you can help your LGBT clients provide: Benefits for which a partner or dependent may not be otherwise eligible. Funding for a trust to benefit the couple s children and help address potential inheritance issues. ** Please note: Under recent IRS guidance, a same sex marriage (or relationship recognized as marriage) recognized in the state of celebration will be recognized for federal law purposes regardless of the status of same sex marriage in the state of residence.

6 CONCEPT KIT Conversation Points The following conversation points can be used to introduce and discuss the Life Insurance in Retirement Planning strategy. Be sure to review the Life Insurance in Retirement Planning marketing material (included in the Sample Material section) prior to meeting with your clients. WHEN SETTING UP A MEETING Let your clients know you want to get together to share some information on a life insurance strategy that could help protect them today and provide supplemental income in retirement. Bring up relevant facts about the income gaps they could experience in retirement. Let them know that we can help them meet their needs. AT THE START OF THE MEETING BEFORE DISCUSSING THE CONCEPT WITH CLIENTS, SEE IMPORTANT CONSIDERATIONS ON THE BACK PAGE TAKING THE NEXT STEP Start the meeting by discussing your client s current protection needs family, mortgage, children s education, etc. Then bring up long-term needs and ask how much income the client will require in retirement to maintain his or her current lifestyle. If they do not have a financial plan in place, you may wish to take the opportunity to suggest that they consider doing so. Let your client know how a Life Insurance in Retirement Planning strategy could help them. MEETING WITH CLIENTS WITH PROTECTION NEEDS Thoroughly review these Life Insurance in Retirement Planning marketing materials with the client to make sure he or she understands the benefits and risks of a cash accumulation life insurance product. You should also make sure clients understand how products are designed for different risk tolerances. You should also review the Important Considerations (included at the end of this folder) associated with the Life Insurance in Retirement Planning concept with you clients. INTRODUCING THE ILLUSTRATION After reviewing the appropriate life insurance product brochures, show your clients a sample illustration to help them understand how different policies could potentially perform within the strategy. Let them know that this illustration will be adjusted to meet their needs and serves only as a starting point. DECIDING ON A COURSE OF ACTION Review the illustration(s) with your clients and talk about an appropriate course of action that meets their needs. Be sure to show them how the product you have chosen will protect them and their loved ones today and potentially provide them with income in the future.

7 SAMPLE MATERIAL In addition to the samples in this pocket, please go to Pruxpress for convenient access to all of the material available for this concept.

8 IMPORTANT CONSIDERATIONS WHEN DISCUSSING THE CONCEPT WITH CLIENTS This concept is only intended to be used for assets that will not be needed for living expenses for the expected lifetime of the insured. It is the responsibility of the client to estimate these needs and any other one time costs. If your client s financial situation changes and they need to forego making premium payments to focus on paying other expenses, their life insurance death benefit may terminate and the results illustrated may not be achieved. Loans taken will become taxable upon policy surrender or lapse. Your client should consider developing a comprehensive financial plan to take into account current and future income & expenses in conjunction with implementing a strategy discussed herein. The death benefit protection offered by a life insurance policy can be a key component of a sound financial plan. We recommend that your client consult their tax and legal adviser to discuss their specific situation before implementing any strategy discussed herein. Produced with the environment in mind Printed on on Recycled Paper Paper With with % 10% Post Post-Consumer Waste Waste * Federal tax law limits the amount of premium contributions that can be made to a policy in order for it to retain certain tax advantages. When premium contributions exceed this limit, the policy is classified as a Modified Endowment Contract (MEC). Distributions from MECs (such as loans, withdrawals and assignments, including distributions made in the two years prior to becoming a MEC) are taxed less favorably than distributions from policies that are not MECs. For distributions from a MEC prior to age 59½, a federal income tax penalty may also apply. However, death benefits are still generally received income-tax free pursuant to IRC 101(a). Please consult a tax advisor. Life insurance policy cash values are accessed through withdrawals and policy loans. Loans are at interest. Unpaid loans and withdrawals cause a reduction in cash values and death benefits. In general, loans are not taxable, but withdrawals are taxable to the extent they exceed basis in the contract. Loans outstanding at policy lapse or surrender prior to the death of the insured will cause immediate taxation to the extent of gain in the contract. Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY and/or NJ), and Pruco Life Insurance Company of New Jersey (in NY and/or NJ), all located in Newark, NJ. Each company is solely responsible for its own financial condition and contractual obligations. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. This material is designed to provide general information about the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting, or tax advice. Such services should be provided by the client s own professional advisors. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities Prudential Financial, Inc. and its related entities. [ML# ] Ed. 09/2013 Exp. 03/23/2015

Life Insurance in Retirement Planning HOW PERMANENT LIFE INSURANCE CAN HELP MEET YOUR DEATH BENEFIT NEEDS AND ENHANCE YOUR RETIREMENT. 0251133-00002-00 Did You Know? Many high-income and high-net worth

PruLife Founders Plus UL PREPARE FOR THE POSSIBILITIES IN LIFE The Prudential Insurance Company of America 0255027 0255027-00001-00 Ed. 12/2013 Exp. 06/12/2015 A FINANCIAL LEADER FOR OVER 135 YEARS Prudential

Life Insurance and Women P ROTE CTION FOR ALL THE ROLE S YOU PLAY Life insurance is issued by The Prudential Insurance Company of America and its affiliates. 0253544-00001-00 Ed. 11/2013 Exp. 05/11/2015

VUL Protector PROTECTION. GROWTH. FLEXIBILITY. Issued by Pruco Life Insurance Company VULNLG-2015 FOR USE IN CA ONLY. ABOUT THIS BROCHURE This brochure provides an overview of the key features of VUL Protector

Life Insurance and Women YOU ARE ALL ABOUT LOVE. SO IS LIFE INSURANCE. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ and its affiliates. 0253544-00002-00 Ed. 05/2015

THE PROTECTION OF LIFE INSURANCE. THE POTENTIAL FOR LONG-TERM GROWTH. PruLife Custom Premier II NOT FOR USE IN CA Issued by Pruco Life Insurance Company In New York, it is issued by Pruco Life Insurance

PruLife Index Advantage UL Life insurance protection with a potential cash value growth advantage. Issued by Pruco Life Insurance Company or Pruco Life Insurance Company of New Jersey. 0214196 Ed. 01/2015

Key Person Insurance Protect your business from the loss of a key person with life insurance payable to the business. We offer you this concept piece to help you understand how life insurance can be used

Life Insurance with BenefitAccess Rider A CHRONIC AND TERMINAL ILLNESS RIDER THAT GIVES YOU FREEDOM, CHOICE, AND CONTROL This brochure must be accompanied or preceded by a product brochure. Issued by Pruco

Permanent Benefit Group Life Insurance Under Code Section 79 Expanding the Benefits of Group Life Insurance Advantages of Permanent Benefit Group Life Insurance. Giving employees the option to use cash

Advanced Markets The Flexibility of Cash Value Life Insurance Beyond Protection With today s focus on value and flexibility, cash value life insurance comes into its own. Beyond its main purpose of death

Life Insurance Protection for Your Working Years Issued by Pruco Life Insurance Company or, in New York if available, by Pruco Life Insurance Company of New Jersey. 0194055 0194055-00001-00 WorkLife 65

VARIABLE UNIVERSAL LIFE YOUR 5-MINUTE GUIDE You want it all. Need more from your life insurance? You need life insurance protection for your family, retirement investments for yourself and your preschooler

Nationwide YourLife Survivorship VUL Product guide Everyone could use a little balance Balance protection and growth potential You like the idea of leaving your family a legacy one day. If you have your

CONSUMER GUIDE ACCUMULATION ACCUMULATION VUL Opportunity for today. Planning for the future. LIFE-5211 12/15 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA BUSINESS STRATEGIES Stock Redemption Arrangement for Closely Held Corporations BUSINESS CONTINUATION A successful business has a business succession strategy.

LIFE WHOLE MetLife Promise Whole LifeSM a foundation for life Life. your way SM Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance protect, accumulate and

Small Business Planning Insurance-based Retirement Plan What will your retirement look like? 2 Add life to your business You ve planned, saved, worked and invested, but you re still not sure you ll have

A Flexible Approach to Life s Challenges Variable Universal Life Insurance Variable Annuities offered by: Western Reserve Life Assurance Co. of Ohio MS430795-0506 What are your financial goals in life?

UNIVERSAL LIFE INSURANCE YOUR 5-MINUTE GUIDE Flexible protection for what s most important in life Protection for all the moments that matter Be sure to choose a product that meets long-term life insurance

Executive Bonus Plan Program Highlights & Fact Finder A Rewarding Way to Retain Key Executives Executive Bonus Plans can be an effective way to reward selected employees or owners while providing tax deductions

Life Insurance Client Guide The Art of Retirement Is Your Financial Portfolio an Unfinished Work? Color It with a Life Insurance Retirement Plan Protection Now, Income Later AD-OC-770D 1 Picture Your Future

An easy-issue life insurance solution that rewards healthy living Vitality refers collectively to the benefits provided by John Hancock s Healthy Engagement feature. The Vitality Group is the company that

Protection Now. Income Later. Life Insurance Retirement Plan for Women AD-OC-749C What are two problems facing today s woman? 1 2 The Family s Financial Vulnerability. Whether you are part of a two-income

Life Insurance Review Ensuring life insurance coverage meets today s goals Life. your way SM Life. your way Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance

LIFE TERM Guaranteed Level Term Protection. Flexibility. Value. Life. your waysm Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance protect and transfer wealth

Endorsement Split-Dollar Allowing an Executive to Share in the Benefits of an Employer-Owned Life Insurance Policy AD-OC-859A Endorsement Split-Dollar Searching for Executive Benefit Solutions Retaining

LIFE WHOLE Whole Life a foundation for life At MetLife, our representatives are committed to helping you find solutions to all of life s possibilities and uncertainties the ifs in life. solutions for the

The Principal Financial Group Build a Strong Financial Future LIFE INSURANCE AS AN ASSET Building a strong financial future You work hard to build financial security for you and your family. Are you considering

CONSUMER GUIDE PROTECTION PROTECTION SIUL The pacesetter in affordable, secure protection. For two. IM4156CG JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

Variable universal life insurance Quick reference You want it all. Need more from your life insurance? You need life insurance protection for your family, retirement investments for yourself and your preschooler

TIAA-CREF Life Insurance Company 4-Step Guide to Life Insurance Our promise to help you protect what matters most At TIAA-CREF, we understand the need for life insurance our promise is to help you make

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS LIFE EVENTS BUSINESS DEVELOPMENT PROTECT THE MORTGAGE CONCEPT KIT 0274023-00001-00 Ed. 02/2015 Exp. 09/03/2016 LIFE EVENTS BUSINESS DEVELOPMENT KIT: OWNING

Business Owner s Bonus Plan Producer Guide For agent/registered representative use only. Not for public distribution. Business Owner s Bonus Plan Producer Guide The Business Owner s Bonus Plan is a personally

supplemental income using life insurance supplement your retirement income maintain your lifestyle Investment and Insurance Products: Are Not Deposits of Any Bank Are Not FDIC Insured Are Not Insured By

The Competitive Edge Attract, retain and reward top performers in your corporation Executive Compensation Strategies That Use Life Insurance AD-OC-678C 1 This material is not intended to be used, nor can

Tax-Free Retirement Strategy With Permanent Life Insurance If presenter is a registered representative of ESI: Life Insurance Beyond the Death Benefit [Agent Name] is a Registered Representative of, and

WHY RENT WHEN YOU CAN OWN? A COMPARISON OF TERM & PERMANENT LIFE INSURANCE This guide helps you understand the differences between term and permanent coverage by comparing them to renting versus owning

Section 79 Permanent Life Insurance Your business success depends on the expertise of a few key employees How can you provide life insurance as a benefit to business owners and their employees in a tax

LIFE INSURANCE Life Insurance as an Asset Fr om Peanuts Collection II Fall/Winter CD From Peanuts Char. Portfolio 2002 WO_15A A New Look on Life a valuable component financial of your portfolio Life insurance

Life Insurance Review helping to ensure your life insurance coverage meets today s goals Life. your way Strive to live your dream and plan for the if in life. Discover the flexibility of life insurance

Success Strategy Life Insurance in Retirement Planning Plus Life insurance protection is the foundation of a family s future, providing cash to: replace income for surviving family, pay off family debt,

A Leader in Employee Benefits Solutions Executive Group Variable Universal Life Insurance Prudential Group Insurance The Prudential Insurance Company of America 0216508 A Results-Driven Solution From a

PERSONAL NEEDS PLANNING THE PRUDENTIAL INSURANCE COMPANY OF AMERICA Twelve Life Insurance Mistakes They Aren t Cheaper By the Dozen Eleanor Roosevelt once said, Learn from the mistakes of others. You can

Life Insurance with Access Rider: A Competitive Comparison Many prominent carriers offer products that provide death benefit and chronic illness care protection. Which product or carrier is appropriate

The Principal Financial Group Principal Variable Universal Life Business SM Flexibility to meet key business market needs. BB11294 Are you meeting your business insurance needs? As a business leader, you

Life Insurance Producer s Guide Executive Bonus Using Life Insurance AD-OC-838A For Life Insurance Producer Use Only. Not for Use with the Public. Insurance products are issued by Pacific Life Insurance

Whole life insurance 5-minute guide The promise of life insurance. Keep your promise As a spouse or parent, you ve made a commitment to take care of and provide for your family. If you ve built your own

Life Insurance as a Potential Private Source of Cash Planning Perspective Life Insurance Products: Are Not a Deposit of Any Bank Are Not FDIC Insured Are Not Insured by Any Federal Government Agency Are

A Story of Guarantees and Financial Versatility Whole Life Insurance A Consumer Brochure for Whole Life Understanding Introduction Whole life is a versatile financial product that provides unique benefits

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA BUSINESS STRATEGIES Key Person Life Insurance FREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION When should a business and its owners consider buying insurance

Small Business Planning Executive Bonus Plan Using Life Insurance Restrictive Executive Bonus Arrangement (REBA) Using Life Insurance What s the blueprint for keeping good employees? 2 Add life to your

life insurance helping you make sense of your life insurance options life insurance selection guide Life Insurance Products: Are Not a Deposit of Any Bank Are Not FDIC Insured Are Not Insured by Any Federal

We keep our promises. So you can keep yours. It s a selfless act. The decision you make today is for someone else s future. Purchasing life insurance is about more than just planning for the future. It

Annuity Rescue Strategy An estate planning technique for individuals who own deferred annuities with sizable growth. Transamerica Occidental Life Insurance Company Despite the advantage of tax-deferred

ANNUITY MAXIMIZATION STRATEGY An estate planning technique for individuals who own deferred annuities with sizable growth. Transamerica Occidental Life Insurance Company Preserving Hard-Earned Assets As

Tax-Free Retirement Strategy With Permanent Life Insurance Life Insurance Beyond the Death Benefit Helping Achieve LIFETIME Income Needs Products issued by National Life Insurance Company Life Insurance

LIFE INSURANCE Life Insurance as an Asset Fr om Peanuts Collection II Fall/Winter CD From Peanuts Char. Portfolio 2002 WO_15A A New Look on Life a valuable component financial your portfolio Life insurance

Maximizing Wealth Transfer using Innovative Trust Designs For For Producer or or Broker/Dealer Use Use Only. Only. Not Not for for Public Distribution. Why Life Insurance? Provides for: Personal family

Understanding Annuities Annuities issued by Pruco Life Insurance Company (in New York, issued by Pruco Life Insurance Company of New Jersey) and The Prudential Insurance Company of America. 0160994-00006-00

WHAT EVERY CONSUMER SHOULD KNOW ABOUT LIFE INSURANCE IMPORTANT POINTS TO CONSIDER BEFORE BUYING A LIFE INSURANCE POLICY Please note that this brochure discusses various types of life insurance, including

Horizon Universal Life Insurance Discover More In Life 63992 MK3227(0209) TC46323(0209) Experience Life Now you can protect your home, family, business and future all in one policy. If your need is death

Small-business prospecting guide P For financial professional use only. Not for use with the public. Make the most of an untapped market Small-Business Life Insurance Kit M-5136 Page 1 of 6 Start reaching

Tax-efficient retirement income Using life insurance Enjoy the freedom of tax-free retirement income 111833 A (10/15) Ameriprise Financial Confident Retirement approach The Ameriprise Financial Confident

TIAA-CREF Life Insurance Company Flexible protection to help meet a lifetime of needs Intelligent Life Universal Life Insurance and Intelligent Life Survivorship Universal Life Insurance Designed to meet

Understanding Annuities Annuities ARE NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE IFS-A092313 Ed. 01/2005 Letter

SMART STRATEGIES Getting the Most from Your Insurance This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used

Generate Future Retirement Income for Essential Living Expenses CASE STUDY Pacific Life s Fixed Indexed Annuities 10/15 90090-15A What Might You Face in Retirement? During your working years, you are likely

Allianz Life Insurance Company of North America Fixed index universal life insurance Are your clients worried about the cost of college? P For financial professional use only. Not for use with the public.